If you are planning to buy a Mercedes, the coming year may be costly for you. Luxury car makes Mercedes-Benz India has hinted that it may increase the prices of its vehicles every three months in the 2026 calendar year. The company’s managing director and CEO, Santosh Iyer, said on tuesday that changes in foreign exchange rates are putting strong pressure on the business. since many parts and components are imported. Since many parts and components are imported, a weak rupee makes cars more expensive to produce. To manage these rising costs, the company may have no option but to pass some of the burden on to customers through regular price hikes.
Company Explained the reason
The company explained that around 18 months ago, one euro was prices at about 104-105. This means the rupee has weakened by a sharp 15 to 18 percent against the euro. Because of this, the cost of importing parts and building cars in india has gone up significantly. At present, there is still a 10 to 15 percent gap between the fall in the rupee and the current car prices. to cover this difference and manage higher costs, the company says it has become necessary to increase vehicle prices in the coming months.
What Santosh Iyer Said?
According to Santosh Iyer, the company does not want to put a heavy burden on customers all at once, as this could hurt demand in the market. That is why Mercedes-Benzes India has already announced a price increase of up to 2 percent from January 1, 2026. After that, prices will be reviewed every three months. it is expected that car prices could go up by around 2 percent in each quarter. Iyer explained that if the company applies the full increase one time, it may negatively affect the sales, so a step-by-step approach is seen as a safer and more balanced option for both the company and customers.
This Move by Mercedes-Benz India could also influence the wider luxury car market. Since foreign exchange rates are affecting the entire auto industry, other premium car makes may also feel pressure to raise their prices. There is a strong possibility that rival luxury brands will follow a similar path and announce prices hikes in the coming months. As a result, buying a luxury car in the future could become more expensive across the market, not just for mercedes buyers.
